Second-market Success – How Brands Make it Work Away From Home

It’s always an exciting time in the QSR/limited-service restaurant industry. It seems like every day, a new and inspiring brand pops up and takes hold in one area and seems to outdo the competition, or create a whole new niche that they grow into.

The problems tend to start when these local success stories spread their wings and grow into other markets. Here are three tips to help for smoother and more profitable expansion:

Go Slow.

There’s something to be said for taking the time to plan and execute without losing momentum. The ideal is to have three units in one market before expanding to another market. It’s also imperative that you spend time in the potential market as well. Go there. Grab a bite to eat. Watch people. How do they interact with their food. Don’t just spend the day. Spend a week there. Pay someone to live there for a month if you have to. You can’t just go blindly into a new market and expect to have the same success as your previous market.

Know Where Before You Go There.

Many QSR brands choose a new market that is close, but not too close to their home market. A good example is the distance between Philadelphia, PA and Washington D.C. in the United States. The distance can easily be covered by train or a short flight, so when a CEO needs to check in on operations in the new market, it can be done efficiently. And there’s also a possibility for some brand awareness carryover, depending on the two locations.

Don’t Be Afraid To Compete.

Moving into a market where there is already competition is risky – and it can really pay off. The fact that your competition is already in a market – and thriving – means there is a customer base just ripe for plucking by a competitor (you) who has done their research and is ready to offer better food, better service, better pricing, etc. When done right, entering a competitive market can be good for business – and the bottom line.

These are just three of many things that need to be considered long before moving into a second market. Smart brands take their time without losing momentum and their focus on the already successful market.

Moving into a second market can be a challenge. Some brands make it. Others do not. But those who never try will never know if they can be successful somewhere other than their home market. Got a brand you think should make the move to a second (or third or fourth) market? Let us know in the comments!